Company Update : Avalon Technologies Ltd - Motilal Oswal Financial Services
Earnings beat estimates; strong recovery witnessed
* Consolidated revenue grew 37% YoY to INR2.75b (est. INR2.4b), aided by a recovery in US business (up 57% YoY to INR1.6b).
* Clean energy segment witnessed 98% YoY growth, followed by 59%/36% YoY growth in the medical/mobility segments.
* EBITDA margin expanded by 470bp to 11% (est. 6.4%) despite gross margin contraction by 40bp YoY to 36.8%. Employee expenses/other expense as % of sales stood at ~17%/8.9% vs. ~22.7%/8.3% in 2QFY24.
* EBITDA jumped 2.4x YoY to INR301m (est. INR151m).
* Adj. PAT surged 2.4x YoY to INR175m (est. INR70m).
* The order book grew 19% YoY to INR14.85b.
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